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December 14, 2016
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March 7, 2003
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October 26, 1967
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Approved For Release 2003/04/18 : CIA-RDP79T00975A0104002Tha1$ecret 25X1 DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin STATE review(s) completed. Top Secret Cm 173 26 October 1967 Approved For Release 2003/04/18 : CIA-RDP79T00975A010400220001-1 25X1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Approved Foti 25X1 Central Intelligence Bulletin CONTENTS Egypt-Israel: Egyptian economy suffers major blow from shelling of refineries, (Page 3) USSR: Soviets may resume transmitting satellite weather data to the US. (Page 5) European Communities: The Six are still sharply divided over British membership. (Page 6) Peru: Belaunde says decision to buy French jet fighters cannot be reversed. (Page 7) Peru: US-owned businesses may be harmed by dispute between IPC and the government. (Page 8) Congo (Kinshasa): The mercenary problem (Page 9) Chile: Anti- US demonstrations (Page 9) Communist China - Hong Kong: Border discussions (Page 9 Approved For Release 2003/04/18 : CIA-RDP79T009V5A010400220001-1 25X1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Next 1 Page(s) In Document Exempt Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Tripoli LEBANON BEIRUT?' -Port Said STRIP /.... ~..~+"~ 68435 10-67 Area occupied by Israel Ap 26 Oct Map Approved For Release 2003/04/18 : CIA-RDP79TOp Egypt-Israel: The extensive damage done by the Israeli shelling to the two refineries at Suez is a ma- jor blow to the Egyptian economy. the entire production capacity o 14U,UUU barrels per day is out of commission, at least temporarily. In addi- tion, up to half of the country's oil storage capacity has been destroyed or damaged, along with the con- tents of the tanks. Rebuilding of the refineries may take up to two years from the start of construction. Since petroleum products provide about two thirds of Egypt's total en- ergy requirements, a very large share of the remain- ing industrial production may be curtailed by an oil shortage. In order to maintain its present level of consump- tion, Egypt would have to import about $5 million of refined products per month. The domestic pipeline terminal at Suez probably has also been damaged se- riously. This would complicate the problem of dis- tributing any refined products Egypt may be able to import. Finally, limited storage capacity could force Egypt to close down production at the Morgan oil field in the Gulf of Suez within a few days. (Map) 26 Oct 67 Approved For 25X1 25X1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Approved Forl USSR: A meteorological satellite launched from Plesetsk on 24 October should enable the Soviets to resume transmission of satellite weather data to the US. Moscow stopped sending such data in mid-Septem- ber, probably because the quality of its information de- teriorated below the level required by the Soviet-Ameri- can agreement of 1962. The Soviets are receiving spo- radic weather data from their "Meteor" system, two satellites launched in February and April. These satel- lites are large, but have a useful lifetime of only about six months, Smaller US systems have returned high quality data for periods in excess of a year. The Soviet weather satellite performance has never fully satisfied the terms of the agreement. The first So- viet satellite to operate satisfactorily was not launched until June 1966, one year after the exchange of data was to have begun. Moscow did not send any data at all until September 1966, and the usefulness of the information passed has been limited because the Soviets have failed to transmit it within the six-hour time limit specified in the agreement. 26Oct67 5 Approved For Rele - A010400220001-L5X1 Approved For R lease 2003/04/18: CIA-RDP79T0 975AO10400220001-1 European Communities: This week's meeting of the European Communities' Council of Ministers left the Six as sharply divided as ever over opening negotiations with London on British membership. Some observers believe that the French, at the meet- ing, came as close to vetoing negotiations as possible with- outactually doing so. Foreign Minister Couve de Murville stated categorically that the restoration of equilibrium in the UK's balance of payments and the "adaptation" of ster- ling's role from that of an international currency were "necessary preconditions" to negotiations. He again pointed to the possible dangers involved in enlarging the community. The French may have left themselves a way out in the event they find it expedient to soften their position. Couve claimed that France had no objections "in principle" to new members and noted that negotiations should begin only if it were clear they could succeed. Otherwise, they would once again run the risk of breaking down. All of the Five spoke in favor of British entry. The Benelux countries apparently were firmest in stressing the need for immediate talks with London. West German For- eign Minister Brandt stated that the problem had to be treated right away among the Six and "soon" with the candi- dates for entry. At the next Council meeting on 20 Novem- ber the ministers presumably will discuss in more detail Britain's economic and monetary problems. British Prime Minister Wilson's initial response to the meeting this week leaves little doubt that London will continue to press its entry bid. The British probably rea- son that the only way to force a showdown is to pursue an active campaign for UK membership. 26Oct67 6 Approved For a ease 2003104118 : - 75A010400220001-1 Approved For Re Peru: President Belaunde has told the US ambas- sador in Lima that Peru's decision to purchase Mirage- V supersonic aircraft cannot be reversed. Belaunde emphasized it would be a waste of time to discuss further the US offer of F-5 aircraft as a substi- tute for the Mirage. When he was warned that this deci- sion would imperil the pending US program loan, he said that if this meant the end of economic relations between Peru and the US, the sooner he knew it the better. The ambassador noted that Belaunde seems harassed by urgent problems arising from the generally tense situa- tion in the country. Specifically, Belaunde is worried about the disturbances in Lima-Callao and the general strike in Arequipa, which he fears may spread to other cities. 25X1 Peruvian military leaders are known to be concerned 25X1 over the growing unrest within the country and may even- tually intervene if the government appears unable to han- dle the present situation. 26 Oct 67 7 Approved For Rel 010400220001-1 25X1 Approved For RoIease 2003/04/18 : CIA-RDP79T009f75A010400220001-1 Peru: The future of US-owned businesses in Peru may be adversely affected by a new dispute between the International Petroleum Company (IPC) and the govern- ment. Since Peru devalued its currency on 1 September, IPC has suffered heavy financial losses because of the government's insistence that it maintain predevaluation prices for the refined petroleum products it brings into the country. President Belaunde has promised some relief after the congressional elections on 12 November, but has refused to say just what will be done. As a re- sult, IPC has been deliberately holding back on imports. The present dispute will make it more difficult to settle other points at issue between the company and the government, especially the thorny problems of back taxes allegedly owed by the company and compensation for se- questered properties 26Oct67 8 Approved For R 5A010400220001-1 Approved For Release 2003/04/18 : CIA-RDP79T00975A0I10400220001-1 25X1 Congo (Kinshasa): US officials in Kinshasa are be- coming concerned about the lengthy delay in evacuating mercenaries .and Katangans from the eastern Congo, The International Red Cross, which is to supervise the operation, has run into a number of bottlenecks, and it is not entirely certain that Schramme remains willing to leave. Other mercenaries in Angola may get their "invasion" under way before the Schramme forces can be evacuated, although there have been no firm indica- tions yet that the Angola plotters are ready to move right now Chile: Anti-American demonstrations probably will occur in Santiago during the three-day Continental Youth Solidarity Conference on Vietnam that begins on 30 October. The conference is being organized by the youth groups of the Communist and Christian Democratic parties, assisted by the first secretary of the Commu- nist World Federation of D mocratic Youth who arrived in Santiago on 20 October. Communist China - Hong Kong: The Chinese Commu- nists have proposed talks between Chinese and Hong Kong border authorities on the question-of the British police in- spector abducted on 14 October, The Chinese apparently are attempting to place the British in a poor initial negotiat- ing position, however, by insisting that the talks be held exclusively on Chinese territory.. Although the British have responded favorably to the idea of talks, they have balked at this condition, fearing that such a move would look like a Macao-type "ca itulation" and help erode public confi- dence. 25X1 25X1 26 Oct 67 9 Approved For Release A010400220001-1 25X1 25X1 Top SecMtroved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1 Top Secret Approved For Release 2003/04/18 : CIA-RDP79T00975AO10400220001-1